China blue-chips edges up as coal, real estate stocks gain

SHANGHAI, Oct 11 (Reuters) – Chinese blue-chip companies edged up on Monday, as coal firms were lifted by supply fears and real estate shares gained on some cities’ planned supportive measures.

** The blue-chip CSI300 index rose 0.1% to 4,936.19, while the Shanghai Composite Index ended flat at 3,591.71 points.

** The coal sub-index surged 4.1% amid short supply, which led to China’s worst power crunch in years.

** China has ordered its two top coal regions to boost output and will allow coal-fired power utilities to charge customers higher prices.

** Citic Securities said it would take time for the measures to take effect and estimated the supply crunch situation is hard to be reversed this year.

** Real estate firms and banks gained more than 2% each.

** Harbin has become one of the first cities in China to announce measures to support property developers and their projects, and analysts expected some other cities will follow suit.

** A sub-index tracking defence stocks rose 1.9%.

** Chinese President Xi Jinping vowed on Saturday to achieve “peaceful reunification” with Taiwan, while the Chinese-claimed island responded by calling on Beijing to abandon its coercion.

** Talks between Indian and Chinese military commanders to resolve a protracted standoff on a stretch of disputed Himalayan border have broken down, with both sides blaming each other on Monday.

** The environmental governance sub-index lost 3.4%, while the construction engineering sub-index shed 2.8%. (Reporting by Shanghai Newsroom; Editing by Amy Caren Daniel)


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